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Completion and filing of accounts

Completion and filing of accounts

 

calculation1.jpgAll limited companies registered in the UK are required to prepare financial accounts for Companies House and HMRC each year. These accounts are often referred to as ‘annual accounts’ or ‘statutory accounts’ and they are used to report the financial activity and performance of a business during its most recent financial year.

The financial year of a limited company is usually a 12-month period that ends on the ‘accounting reference date’ (ARD), which normally falls the anniversary of company formation. Annual accounts are also used to work out how much Corporation Tax a company has to pay to HMRC on its taxable profits.

We can take your existing accounts, or even envelopes full of invoices, receipts and bank statements, and produce the appropriate accounts for you.  We'll also file these for you with Companies House and prepare your Corporation Tax return, attaching the right set of accounts to these.  If you're a charity registered with the Charity Commission, we can take care of preparing and filingthese accounts as well.

Different types of limited company accounts

All companies, whether trading or dormant (non-trading), must prepare accounts of some kind and provide copies to their members (shareholders or guarantors) and Companies House. Trading companies must also submit accounts to HMRC with each Company Tax (Corporation Tax) Return.

In general, there are 5 types of annual accounts for UK limited companies:

  • Micro-entity accounts
  • Small company accounts
  • Medium-sized company accounts
  • Large company accounts
  • Dormant company accounts

companies house logoThere are three classifications of company accounts for trading companies; small, medium and large. Within the small company classification there is a subset called micro-entity, which applies to very small companies. The size of a company is determined by various thresholds for annual turnover, balance sheet total, and average number of employees, each of which impacts the amount of accounting data required in the accounts. 

All of our clients fall into the category of small, micro-entity or dormant companies, so we'll focus on these.

Here's the current criteria to use to decide which type of company yours is;

Micro-entities

Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:

  • a turnover of £632,000 or less
  • £316,000 or less on its balance sheet
  • 10 employees or less

If your company is a micro-entity, you can:

  • prepare simpler accounts that meet statutory minimum requirements
  • send only your balance sheet with less information to Companies House
  • benefit from the same exemptions available to small companies

Small companies

Your company will be ‘small’ if it has any 2 of the following:

  • a turnover of £6.5 million or less
  • £3.26 million or less on its balance sheet
  • 50 employees or less

If your company is small, you can send abbreviated accounts to Companies House. Abbreviated accounts are made up of the balance sheet from your company’s statutory accounts, along with any notes.

The balance sheet must have the name of a director printed on it and must be signed by a director.

Sending abbreviated accounts means less information about your company will be publicly available.

If your company is small, you can also:

  • use the exemption so your company’s accounts don’t need to be audited
  • choose whether to send a copy of the director’s report or not

Dormant companies

Your company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report. Significant transactions don’t include:

  • filing fees paid to Companies House
  • penalties for late filing of accounts
  • money paid for shares when the company was incorporated

Dormant companies that qualify as ‘small’ only need to send Companies House abbreviated accounts and don’t need to be audited.

 

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About us

Whitehill's aim is to help you develop and grow your business, providing the most cost effective solutions for your business…

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Exceptions

It is not possible to prepare and file micro-entity accounts if a business is, or was at any time during its financial year, one of the following:

  • A limited liability partnership (LLP) or limited partnership.
  • A qualifying partnership as defined under the Partnership (Accounts) Regulations 2008.
  • A public limited company (PLC).
  • An overseas company.
  • An unregistered company.
  • A company authorised to register under section 1040 Companies Act 2006.
  • A charitable company.
  • A company that is excluded from the small companies regime under section 384 of the Companies Act 2006, or is excluded from being treated as a micro-entity under section 384B Companies Act 2006.

A company can qualify as a micro-entity in its first financial year if it fulfils the conditions in that year. In subsequent financial years, the company must fulfil the conditions in that year and the year before. However, if a company that qualified as a micro-entity in one year no longer meets the criteria in its next financial year, it can continue to claim the exemptions available in the next year. If the company then qualifies as a micro-entity by meeting the criteria in the following year, the exemption will continue uninterrupted.

How we can help

We're highly experienced in checking which type of company yours is, and therefore what accounting standards are appropriate to complete and submit your statutory accounts.  We can ensure your accounts are compliant and represent a fair and accurate view, and we're able to provide an independent financial review if required by shareholders or charity Trustees.

We offer all clients:we offer all the support you need

  • A personal bookkeeper. Accounting and tax can be complicated; that's why we offer a personal bookkeeper who is able to meet up and answer any questions you might have.
  • Qualified accounting and bookkeeping staff. No call centres, no outsourcing, no press one for this or two for that. Telephone, email or meet your own personal bookkeeper face to face.
  • Online access to your accounts 24/7.  We use the latest cloud-based accounting and make your accounts available to you via smartphone app, tablet or desktop computer, 24 hours a day, 7 days a week.
  • Great reputation for a friendly, helpful service. We're building a great reputation for providing a first class service without the fuss.  

Our all inclusive package for contractors and small businesses includes: 

As your business grows, you can add on;


To read more about the solutions we offer, click on the relevant link below.